Family Firm Internationalisation: A Network Perspective

153 Pages·2020·1.824 MB·English

by  Tanja Leppäaho, Jaakko Metsola

Family Firm
Internationalisation
A Network Perspective
Tanja Leppäaho
Jaakko Metsola
Family Firm Internationalisation
Tanja Leppäaho · Jaakko Metsola
Family Firm
Internationalisation
A Network Perspective
Tanja Leppäaho Jaakko Metsola
LUT University LUT University
Lappeenranta, Finland Lappeenranta, Finland
ISBN 978-3-030-28519-7 ISBN 978-3-030-28520-3 (eBook)
https://doi.org/10.1007/978-3-030-28520-3
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To Emilia and Mikael, love and inspiration of my life
Tanja Leppäaho
To Mikael, Julius and Jenna, my teachers of love and happiness
Jaakko Metsola
Preface
Internationalisation has long been an imperative for many firms to sur-
vive in an increasingly globalised world economy. Thus, it comes as no
surprise that the research on international business and the internation-
alisation of firms has evolved into its own discipline attracting scholars
worldwide to study the complexities of conducting business across bor-
ders. The internationalisation of Family Firms (FFs) has been the latest
and trending subtopic within the discipline. Given the large amount as
well as the special nature of FFs in the global economy, it is unsurpris-
ing that they are of special interest. The first notable scientific article on
FF internationalisation was published in 1991 by Miguel Angel Gallo
and Jannicke Sveen in Family Business Review, titled Internationalizing
the Family Business: Facilitating and Restraining Factors. Although the
research on FF internationalisation has witnessed exponential growth
over the decades to this date, the same questions that Gallo and Sveen
(1991) aimed to answer almost three decades earlier—What factors do
really facilitate and restrain the internationalisation of FFs? What makes
the internationalisation of FFs special?—are still being explored.
The paradox of ‘FFs are and are not like other firms’ inspired Tanja
Leppäaho (previously Kontinen) in the mid-2000s and, later, Jaakko
vii
viii Preface
Metsola in the mid-2010s to take up the challenge on studying FF
internationalisation. Both were particularly inspired by the lack of net-
work perspectives on FF internationalisation. After all, the world, the
business environment, and the research on international business and
internationalisation themselves had transformed into networked con-
texts and network-focused phenomena. In the research context, dif-
ferent seminal theories and concepts from the network model of
internationalisation (Johanson & Mattsson, 1988) and international
new ventures (Oviatt & McDougall, 1994) to born globals (Knight
& Cavusgil, 2004) and the iterations of the traditional Uppsala model
(e.g. Johanson & Vahlne, 2009; Håkanson & Kappen, 2017) included
networks and network relationships as key antecedents and factors in
firm internationalisation. Ironically, the evolution of internationalisa-
tion research towards network perspectives has occurred concurrently
with the growth of FF internationalisation research; however, the latter
has largely ignored the network perspectives.
During her academic career, Leppäaho has not only developed into
a leading and much-cited scholar in FF internationalisation (Google
Scholar, 2019; Pukall & Calabrò, 2014), but is an expert and advo-
cate of network perspectives in FF internationalisation. In particu-
lar, social capital and social network ties have been her areas of focus.
Under her supervision, Metsola conducted his Master’s thesis on the
FF internationalisation from a network perspective in 2015, which was
awarded by the Finnish Family Firms Association as the best Master’s
thesis on FFs in 2016. Currently, both Leppäaho (Professor, Academy
of Finland Research Fellow) and Metsola (Junior Researcher, Ph.D.
Candidate) work at the School of Business and Management in LUT
(Lappeenranta-Lahti University of Technology) University in Finland.
This is one of the leading schools in the world in international entrepre-
neurship research, especially in the context of born-globals (Dzikowski,
2018; Servantie, Cabrol, Guieu, & Boissin, 2016). In such a fruitful
environment, it has been great to conduct research and increase knowl-
edge on FF internationalisation.
The present book is based on a distinguished 5-year research project
(http://ife.fi) awarded to Leppäaho by the Academy of Finland. The pro-
ject, called Building a Theory on the Family Business Internationalisation
Preface ix
Process: Pathways and Network Ties in Focus (with the informal name
IFE, International Family Enterprise), deals with the internationalisa-
tion of FFs from network and process perspectives in special. In addi-
tion to the large pool of empirical case studies we present in this book,
the IFE project managed by Leppäaho and assisted by Metsola, covers
studies on historical long-enduring FFs, and a survey-based dataset.
The book in your hands is an outcome of a genuine interest in and
fascination about international FFs oftentimes representing the most
human and responsible side of business life in the whole world. Their
importance to the world economy and our everyday lives is often
neglected, but this should not be the case, being that family firms make
about 80% of the company population through the world. It is, hence,
self-evident that they deserve all the possible attention and appreciation.
This book is one of the steps towards a better world for international FFs
or ones willing to become international. In particular, as the term ‘pivot’
in the title indicates, we intend to draw the attention of scholars, teach-
ers, managers, and students to the contemporary yet still largely ignored
topic of FF internationalisation from a network perspective. Owed to
being a diamond in the rough as a research topic, we do not only set-
tle for summarising prior knowledge. We—and perhaps more impor-
tantly—embark upon an empirical investigation of our own, based on
a large number of interviews and secondary data. We believe that this
mix of theory and practice in the form of a Palgrave Pivot book provides
readers with digestible insights related to international networking typol-
ogy, strategies, paths, and success factors, especially in relation to FFs.
Lappeenranta, Finland Tanja Leppäaho
Jaakko Metsola
References
Dzikowski, P. (2018). A bibliometric analysis of born global firms. Journal of
Business Research, 85, 281–294.
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x Preface
Google Scholar. (2019). Tanja Leppäaho’s profile. Available at https://scholar.
google.fi/citations?user ye6xbeAAAAAJ&hl fi.
= =
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Acknowledgements
We want to cordially thank the financial assistance by the Academy of
Finland (Grant Number 308667, 434 485 EUR, 1.1.2017–31.7.2022)
and Foundation for Economic Education.
We also want to thank our dear colleagues Professor Eriikka
Paavilainen-Mäntymäki, Professor Sarah Jack, Professor Emmanuella
Plakoyiannaki, and Professor Pia Arenius and all the scientific com-
munity of LUT and international conferences for their insightful com-
ments in various phases of the IFE project and earlier research efforts.
xi